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Economic Revitalization Zones
About the Program
On October 21, 2016, the New Hampshire Department of Resources and Economic Development (NH DRED) approved Lebanon's nomination of 6 areas of the City as Economic Revitalization Zones (ERZs) pursuant to RSA 162-N.
Economic Revitalization Zones are designated by the NH Department of Resources and Economic Development (DRED) upon application by the City. To be considered for designation, the proposed ERZ must include either: (1) unused or underutilized industrial park lands, or; (2) vacant land or structures previously, but not currently, used for industrial, commercial, or retail purposes, such as a brownfield site.
The six areas nominated by the City of Lebanon include:
Goals of the Program
The general goal of the ERZ Tax Credit program is primarily to encourage retention and growth of existing businesses and the reuse of existing buildings. Secondarily, the program is used to attract new businesses to the State of New Hampshire.
How it Works
Once an ERZ is designated, any business located within the zone can apply directly to DRED for ERZ tax credits, which are short-term tax credits applied against the State's business profits and enterprise taxes. To qualify for the tax credits, a business must make a certain amount of capital investment in facilities and equipment and/or must create new full-time jobs.
Calculation of the ERZ tax credit is based on a percentage of the capital investment made, the number of jobs created, and the salary level of the jobs created. The total amount of tax credits which can be used in any calendar year is $40,000, but eligible credits in excess of $40,000 can be carried forward for up to 5 years.
Other than proposing an area for designation, a local community has no further involvement in the program and incurs no costs in providing the opportunity to local businesses and property owners
For more information about the designated Economic Revitalization Zones, please contact Planning and Development at 603-448-1457. For more information about the ERZ Tax Credit program, please contact the New Hampshire Division of Economic Development directly at 603-271-2591.